TO: FROM: SUBJECT: UNITED STEELWORKERS OF AMERICA CORPORATE AFFAIRS FIVE GATEWAY CENTER PITTSBURGH, PA 15222 MEMORANDUM October 30, 1996 George Becker, President Jerry Fernandez Bridgestone/Firestone Liberian Facts Attached are two documents which briefly explains the nature of Bridgestone/Firestone's actions in Liberia during the civil war. The first document is "Key Points: Firestone and the Liberian Civil War" which you asked me to prepare for Vice President Gore. The second document explains the Economic Community of West African States (ECOWAS) of which Liberia was a member, the legal sanctions imposed by ECOWAS, the violation of those sanctions by Bridgestone, UN Resolution 788 on Liberia and the violation of the Concession Agreement by Bridgestone. I hope that this is what you wanted and that it will be helpful. The Firestone Plantation Company, which has strong roots in the Liberian Community by virtue of a Concessionary Agreement it was granted by the Liberian government in 1926, betrayed the trust and respect of the Liberian community when it signed a ?Memorandum of Agreement? with the National Patriotic Reconstruction Assembly Government on January 17, 1992. The NPRAG is the government set up by the warlord Charles Ghankey Taylor, Cornmander-in-Chief of the the NPRAG is not a legitimate government recognized by the United Nations. In an ongoing investigation by the United Steelworkers of America into Bridgestone/Firestone?s involvement with the Liberian con?ict, the information acquired leaves little doubt that Firestone acted in the most egregious of ways, behavior which most certainly is not representative of a good corporate citizen. Firestone has often been referred to as the ?backbone of the Liberian economy", and for this reason, amongst other reasons, it had an obligation to act responsibly to the Liberian community. Throughout the Liberian Civil War, thousands upon thousands of pe0ple have been murdered; people have died of starvation and disease, children and women have been raped, and homes and businesses have been looted. The NPFL is largely responsible for these atrocities as it has been the primary barrier to peace in Liberia as a result of its continued violation of numerous peace accords and United Nations sanctions. Firestone aided and abetted the demise of a nation by agreeing to set up a commercial relationship with Charles Taylor. 1. Firestone repeatedly sought to resume operations on the rubber plantation in the midst of a civil war. This was an action initiated by Firestone, ?om the top levels of management in Japan right down to the plantation managers in Liberia. Chairman of Bridgestone/Firestone, Yoichiro Kaizaki met with NPRAG of?cials to make clear he would spread the good word about Liberia to Japanese investors if there was a way of allowing Firestone to operate without constraint and to earn a pro?t; particularly since Firestone hadbcen with out income to offset the expense. Statements made by represematives of Firestone such as Trevor Hoskins and Don Ensminger that Firestone ceased operations as of the onset of the war are without doubt false. The war began on Christmas Eve of 1989, and it was not until July 14, 1990 that all expatriates were evacuated from the plantation This evacuation took place only a?er the General Manager Ensmingerwas placed at gunpoint by an NPFL soldier. Prior thereto, Firestone had remained on the plantation in spite of NPFL occupancy, with no intention to leave. 2. Correspondence between top officials of Firestone to the NPFL and the Interim Government clearly outline Firestone?s intention to resume operations, at any cost However, in attempting to negotiate its way back onto the plantation, it used offerings of humanitarian aid as a means of persuasion. By offering to provide rice and some medical supplies, it sought to resume operations, be exempt from import duties, obtain monetary restitution from the government, and to renegotiate its Concessionary Agreement. The $1.2 million spent by Firestone on ?humanitarian rice", was apparently mostly used in connection with Firestone?s resumption of operations. A more deplorable act exercised by Firestone was the submission of the cost for humanitarian aid for reimbursement in an insurance claim. 3. The January 22. 1992, agreement between Firestone and the NPRAG was signed by the ActingGeneral Manager of PCO, Gale LRuff, NPRAG Minister of Finance, William EDennis, and Minister of Agriculture, Dr. Roland C. Massaquoi. The agreemert enabled Firestone to resume operations of its rubber estates, providing that certain conditions were met. The agreement outlined a timetable for restarting rubber production. In return for security on the plantation, Firestone agreed to pay taxes to the NPRAG. Firestone made payments by check and inokind to Taylor or his shadow govemment between January 1992 and January 1993 totaling $2.35 million; $534,000 alone between November 1992 and January 1993. In addition. sources report a document referencing a $230,000 payment by Firestone wired to Charles Taylor?s account at Union Bancair in Geneva, Switzerland on November 22, 1992. If this report is correct, it raises questions about what Firestone knew about Taylor?s use of money since the payments were earmarked for employee withholding taxes, social security, and workers? compensation. 4. As a result of the irestonoNPRAG agreement, Firestone was clearly militarized, not only on the plantation itself, but also for the transport of rubber to Port Buchanan. Buchanan was NPF controlled. 5. January 1992 through November 1992 is the most signi?cant time period of Firestone?s collaboration Signi?cant amomts of rubber were being produced and exported. On October 15, 1992, Taylor launched a major offensive attack in an attempt to gain control of the capital city Monrovia. This offensive, which resulted in the death of 3,000 people, was launched ?om?ie Firestone rubber plantation at Harbel. During this period of time, Firestone was in full operation. Subsequent to this attack, the Interim President Amos Sawyer held a videotaped press conference in which be accused Firestone of collaboration. The videotape which has been reviewed by the USWA confirms many of Sawyers allegations, particularly that the Firestone plantation was utilized as a supply depot and staging area for Operation Octopus. The video, shot in March 1993, clearly shows stockpiles of artillery shells on the plantation and a substantial quantity of nibber, packed and awaiting shipment. There is also documented evidence that Firestone allowed the NPFL use of its radio to launch the offensive from the plantation. Subsequent to Operation Octopus, mam graves were found on the plantation, near the Firestone Factory. In Octoba 1992, following Octopus, ?ve American nuns were murdered by the NPF L. In spite of UN. sanctions and requests made by the US. State department that businesses refrain ?rom setting up commercial relationships with Taylor, Firestone pursued its own agenda In the face of bloodshed, irestone?s ?modus operandi" was to ensure that the rubber plantation continue to yield a pro?t. It is clear that without the ?nancial and logistical support of Firestone, Charles Taylor would not have been able to prolong his exercise of destruction to the Liberian community. Although Firestone may not have tired the shots which resulted in mass killings, it most certainly provided the bullets. Reports as of March 1996 indicate that Firestone intends to resume operations as soon as agreements are reached with the new Transitional Government, and when the country is stable enough to permit its return. In March 1996, news reports indicated that Firestone management was back in Liberia registering up to 1,000 workers for possible employment. In light of irestone?s ectivities throughout the Liberian Civil War, businesses. investors and governments worldwide should evaluate their dealings with a company which gives so little value to the very basic requirements of respect and dignity for fellow human beings. ECOWAS (Economic Community of West African States) Established by Treaty 5/28/75 Membgs 16 Nations Ivory Coast, the Gambia, Ghana, Liberia, Mali, Nigeria, Sierra Leone, Togo, Benin, Guinea, Guinea-Bissau, Senegal, Burkina Faso, Cape Verde, Mauritania, Niger Authority to intervene in Liberian civil war 0 Protocol on Non-Agression, adopted at the Third Conference of Heads of State and Government of ECOWAS, held in Dakar, Senegal, on April 22, 1978? 0 Protocol on Mutual Assistance on Defence, adopted in Freetown, Sierra Leone, 5/28/81.2 geci?c initiatives of ECOWAS in Liberia 0 Creation of ECOWAS Cease-Fire Monitoring Group (ECOMOG) by the Standing Mediation Committee at Banjul, Gambia, August 7, 1990. members: Gambia, Ghana, Guinea, Mali, Nigeria, Senegal (out 1/93), Sierra Leone. 0 Sponsored cease-?re agreements and peace agreements,? which have all have been broken to date. - Sanctions against warring factions that failed to comply with peace agreements. ECOWAS Peace Plan of 1990 0 Established a cease-?re, formation of an Interim Government and a plan for elections. - Purusant to the 1990 peace plan, the Interim Goverment was formally established and recognized by the UN and OAU in April 1991.? Yamoussoukro Agreement 0 Reached 10/3 0/91 under auspices of provided for encampment and disarmament of warring factions under the supervision of an expanded ECOMOG and the 1Report of the Secretary-General on the Question of Liberia, UN Doc. 8/25402, 3/12/93. 3See attached schedule of peace agreements from the Liberian Civil War. ?Report of the Secretary-General on the Question of Liberia, UN Doc. 3/ 12/93. I establishment of institutions to carry out elections in 10/92. Principal signatories to Yamoussoukro included the Interim Government (Amos Sawyer) and NPRAG (Charles Taylor). Comprehensive Economic Sanctions Against Territory Controlled by Chimes Taylor - Imposed by ECOWAS at its 15th session of the Authority of Heads of State and Government in Dakar, Senegal 7/29/92. This is the principal executive body of ECOWAS. The sanctions gave Taylor 30 days to comply with Yamoussoukro or face a trade embargo. - Speci?cally the sanctions consisted speci?cally of a blockade of all points of entery to Liberia -- by land, air and sea -- in order to pervent parties not complying with the Yamoussoukro IV Accord from having acess to war materiel and from exporting products ?om the zones they control in the country. NPFL controlled-territory was singled out. ECOWAS also sought the assistance of the UN Security Council to make the sanctions e??ective and binding on all members of the international community in acordance with the Charter of the UN. 0 We do not yet have a copy of the sanctions, but expect one shortly. UN. Resolution 788 0 Resolution 788 was passed by the UN. Swurity Council on November 19, 1992, at the request of ECOWAS. 0 Resolution 788 imposes an arms embargo on all weapons and military equipment to Liberia except for the peace-keeping forces. It also endorses the economic sanctions against Taylor by requesting ?all states to respect the measures established by ECOWAS to bring about a peaceful solution to the con?ict in Liberia on member states to exercise restraint in their relations with all parties to the liberian Although ECOWAS asked the UN. to explicitly impose sanctions on export trade, it did not explicitly do so. 0 The US. is committed to Resolution 788 and the ECOWAS peace process. Financially, the U.S.has contributed about $60 million to date to support the ECOWAS peace process in Liberia. As of March, 1993, the US. had provided $28 million to support the ECOWAS peace process. Firestone?s Violations of the Sanctions According to Firestone documents, the company shipped 4.8 million pounds of latex in July, 1992 and 600,000 tons of block rubber in October, 1992. Strictly speaking, only the October shipment would have violated the ECOWAS economic sanctions. However, since Taylor?s NPMG and Firestone agreed on and set forth a schedule of production for export, it could be argued that, since Firestone maintained operations pursuant to this agreement on the plantation until at least February, 1993, its economic activity constituted a violation of the sanctions in addition to the October, 1992 block rubber export. Moreover, in March, 1993, containers of Firestone rubber packed and awaiting export were discovered by ECOMOG forces in the port of Buchanan (see videotape). This suggests that Firestone may have tried to or even succeeded in exporting rubber beyond the October date that the company claimed in its internal documents. We also know from deposition testimony that rubber convoys leaving the plantation en?route to Buchanan were escorted by NPFL anti-aircraft units. This was because ECOMOG was enforcing the sanctions ?'om the air. End of Economic Sanctions? The Cotonou Accord reached between the warring factions in July, 1993 appear to have cancelled the ECOWAS sanctions imposed in July, 1992. Article 19 of the accord ?General Amnesty? states that ?..the Parties agree that business transactions legaly carried out by any of the Parties hereto with private business institutions in accordance with the laws of Liberia shall in like manner be covered by the amnesty herein granted.? Firestone?s Violations of the Concession Agreement According to Firestone?s internal documents, the internationally recognized Interim Government of Liberia accused Firestone in a 1993 memorandum: materially violating the concession agreement; failing to pay the legitimate government taxes due; violating L?>erian criminal laws; and. failing to obtain proper work permits for its expatriate employees. Speci?cally with regard to criminal law violations, the Interim Government accused Firestone of criminal conspiracy to defraud the government and failure to surrender 25% of export earnings in exchange for local currency, part of a scheme tied to wage payments in local currency. It concluded that these violations were a basis for terminating the concession agreement and ?exposing Firestone to criminal proceedings.? The basis for criminal charges appear to have been the Interim Goverment?s belief that the company deliberately intended to defraud or evade its obligations. Attached is Firestone?s memorandum in response to the Interim Government?s memorandum.